Court Battle Erupts Over Prime Lands’ Rs. 3.5 Billion Deal

The controversial sale of Blue Mountain’s landmark property in Colombo 4 to Prime Lands Residencies PLC for Rs. 3.5 billion has been challenged in the Commercial High Court.

Three apartment purchasers of the luxury “Achilleion” project, originally launched by Blue Mountain Properties, have petitioned the Court to set aside the sale. The plaintiffs allege the property was sold by Sampath Bank PLC to Prime Lands at a value far below its true market price, leaving more than 70 other purchasers defrauded.

According to the plaintiffs, the terms of a Supreme Court settlement (SC/Appeal/85/2025) were fraudulently executed to the exclusion of a majority of buyers, many of whom had already paid millions to the developer. They argue the bank failed to honor its obligations under the settlement and that the transaction amounts to a collusive arrangement between the developer, the bank, and Prime Lands.

The purchasers are calling for the impugned sale to be annulled and a fresh auction to be held, claiming the original process was improper, unfair, and marred by fraud.

Upon hearing the matter, the Commercial High Court issued notices of interim injunctions on the Defendants returnable on October 23, 2025.